
cd /disk/agedisk3/medicare.work/poterba-DUA52260/jetson-dua52260/kyphon/substitutes
use groupspanel.dta
keep if group  == 999


local treatment_period =  mofd(mdy(12, 12, 2005))
disp `treatment_period'


** Create linear projection
gen last24 = pmt_amt if `treatment_period' - dt <= 24 & `treatment_period' - dt > 0 
reg last24 dt 
predict linear  
replace linear = . if dt < `treatment_period' - 24

** Produce difference in series
gen deterrence = linear - pmt_amt if dt >= `treatment_period'

** Time discount the difference at 10% 
local r = 1.1^(1/12)

gen deterrence_disc = deterrence*1/(`r'^(dt-`treatment_period'))
replace deterrence_disc = . if dt-`treatment_period' >= 60
count if !mi(deterrence_disc)
assert(r(N)==60)

*** Compute total
log using robustness/linear/deterrence_linear.log, replace
preserve
collapse (sum) deterrence_disc
qui summarize deterrence_disc
local deterrence = r(min)
disp `deterrence'
restore
log close

*** Truncate graph at 5 years 
drop if dt  - `treatment_period' >= 60
summarize dt 
local minperiod = r(min)
local maxperiod = r(max)

** Settlement date:
local settlement= mofd(mdy(5,22,2008))


format dt %tm_Mon_YY
twoway (line pmt_amt dt, lcolor(navy) lwidth(thick)) (line linear dt, lwidth(thick) lcolor(maroon) lpattern(dash)) (rarea pmt_amt linear dt if dt>= `treatment_period', color(gs5)), xline(`treatment_period') xline(`settlement', lcolor(black)) legend(order(1 "Outpatient Spine" 2 "Linear Projection") width(150)) xscale(range(`minperiod' `maxperiod')) xlabel(516 `treatment_period' `settlement' 612) xtitle("Month") ytitle("$/Month") graphregion(color(white)) yscale(range(0 17000000)) ylabel(0 7500000 15000000, format(%13.0fc))

graph save "robustness/linear/Kyphon_Substitute_linear.gph", replace

